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On Our Radar

China Shares Dip on Industrial Profit Slowdown

China stocks edged lower on Thursday, reversing some losses in the morning session, while investors remained cautious in the face of slowing industrial profit growth, persistent yuan weakness, and growing concerns over tighter liquidity.

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The blue-chip CSI300 index fell 0.3 percent, to 3,345.70, while the Shanghai Composite Index lost 0.1 pct to 3,112.35 points.

Profits in industries such as electronics, steel and electricity were hit by a significant drop in growth, reinforcing suspicions that recent economic stability was the result of government stimulus and could be short-lived.

Further hurting sentiment, China's offshore yuan slipped to fresh six-year low on Thursday after the People's Bank of China set a weaker midpoint.

Underscoring the tightening liquidity concerns, China's 10-year treasury yields are set to rise for the fourth day on Thursday, while the seven-day repo rate , a widely-watched indicator for short-term borrowing costs, hit a one-month high on Wednesday.

Most sectors lost ground, led by infrastructure and energy stocks.

Meat processing company Henan Shuanghui tumbled more than 6 pct after it reported a decline in Q3 net profit. (Reporting by the Shanghai Newsroom)